Cedar Fair revenue, attendance up over last year, capital expenditure amount disclosed

Posted Tuesday, November 12, 2002 6:32 AM | Contributed by Jeff

Cedar Fair, LP, the parent company of Cedar Point, Knott's Berry Farm and other parks, announced yesterday that their earnings were up about 5% over last year after three quarters. In-park per capita spending was flat while attendance was up at most of the parks.

Cedar Point maintained its attendance mark while seeing a 15% increase in resort revenue. In-park per capita spending was flat, and they partially attribute this to strong season pass sales.

Dorney Park again had a record year, with attendance up another 4%. Worlds of Fun saw a 2% increase while Knott's was up 1%. Valleyfair was off less than 1%. Michigan's Adventure was flat, but increased per capita spending by 15%.

In a conference call today, CEO Dick Kinzel said that capital expenditures for 2003 would total around $45-50 million, including the Intamin Impulse Steel Venom at Valleyfair, and the unannounced ride at Cedar Point. He said the "major new thrill ride" would be announced in the "near future."

Kinzel also said that they're pleased with the performance of the Lighthouse Point cabins, cottages and full-hookup camp sites, and will likely expand that resort facility in 2004.

Tuesday, November 12, 2002 6:48 AM
Rctycoon2k's avatar wow, by this it means that the CP coaster is going to cost between $36.5 - $41.5 million, if the extra money from the $45-$50 million was just used for the new CP coaster, and no other expansions, im guessing that this coaster will be around $25-$30 million. I go by this by taking the $45-$50 million and subtracting the $8.5 million for the Impulse at VF, Steel Venom...

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Shaun Rajewski
Rctycoon2k
http://www.rctycoon2k.com

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Tuesday, November 12, 2002 6:53 AM
Capital expenditures include considerably more than rides. Without details it would be premature to even guess at the cost of the new CP coaster.
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Tuesday, November 12, 2002 7:46 AM
VF only being off less then a percent is a tribute to the VF team last year. McKenzie and company did a lot with not much.

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Fav Steel: Millenium Force Fav Wood: Viper

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Tuesday, November 12, 2002 8:18 AM
Cap ex = new stuff as opposed to maintaining stuff you already have. I will now speculate on CP's coaster cost...

VF - 8.5 million

WoF - 3 million (guesstimate), about the average budget for a non-coaster year

DP - 3 - 4.5 million (waterslides, pool rehab, spin-and-spue)

MA - general park improvements, I wouldn't say more than $1.5 million

KBF - just opened Xcelerator this season, I'm guessing general improvements with a max of $3 million

So max the other park's expeneditures out at about $20 million and you have $25 million left for CP 2003, give or take a few mill.

Of course, they've already demonstrated the ability to pay off a $25 million cap expenditure (MF) so there's no major risk there. As for the $45-50 million figure, that's there for overrruns, unforseen occurrences, blah blah blah.. Don't believe for one minute they're running around like kids in a mall with $5 from Daddy.

Best news of all for VF's future: Steel Venom is not a big cap expenditure. You heard correctly. WT was a big cap expenditure, PT was a big cap expenditure, but SV is not. If you add up the usual non-coaster cap budget ($3 million) over three years, that alone covers its cost. VF's still got bullets in the gun, sports fans--though I wouldn't look for another huge coaster expenditure before '05.

I just wish they'd add a wavepool in '04. I couldn't and wouldn't ask for anything more. Not only is it family-friendly, not only does it eliminate lines but I think there's only one other wavepool in the state. It's just so very excruciatingly, painfully obvious...

-'Playa

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The CPlaya 100--6 days, 9 parks, 47 coasters, 2037 miles and a winner.....LoCoSuMo.

*** This post was edited by CoastaPlaya on 11/13/2002. ***

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Tuesday, November 12, 2002 8:22 AM

Thats to bad that Knott's attendance didn't really soar with the addition of Xcelerator. But that is pretty much the nature of the So Cal market. You must keep adding rides just to keep your position in the market.

By the way, every Cedar Fair park gets something from that Capital Expenditures money. We know that MA is working on something next year, even if it may only be an expansion of the park's facilities.

Knotts will be getting at least one ride next year, most likely more than that.

So, not all of that will be going to CP's coaster! Besides, don't you think 36 mil is a ripoff? :)

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Tuesday, November 12, 2002 8:51 AM
CoasterFanMatt -

Xcelerator's considerably late opening and very weak (combined with few) TV and radio promos and ads caused for the ride's low recognition among the S Cal market. Perilous Plunge suffered the same consequences back when it debuted.

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Tuesday, November 12, 2002 8:53 AM
Well, in what is considered not the best of economies, I would consider this as an example of how to run a business.
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Tuesday, November 12, 2002 9:27 AM
Jeff's avatar

The fun continues tomorrow when Six Flags releases their earnings. Anyone want to take bets that while one will credit good weather while the other blames bad weather?

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Jeff - Webmaster/Admin - CoasterBuzz.com - Sillynonsense.com
"Climbing as we fall, we dare to hold on to our fate, and steal away our destiny to catch ourselves with quiet grace" - The Stairs, INXS

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Tuesday, November 12, 2002 9:31 AM
Mamoosh's avatar

ROFL Jeff...it should be a good read, eh?

BTW, Knotts is adding at least one new ride to Camp Snoopy. Haven't heard of any other flats for next year.

Moosh

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Coaster & Amusement Park Christmas cards, clothing, gifts, and stocking suffers, now available here.

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Tuesday, November 12, 2002 10:17 AM
ApolloAndy's avatar Xcelerator's opening somewhat coincided with X's real opening, which probably didn't help it too much. SoCal really is dog eat dog.

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Tuesday, November 12, 2002 11:13 AM
And I am sure SF will bring up "post 9/11" excuses again.
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Tuesday, November 12, 2002 1:29 PM
I dont know. For some reason , I think SF will announce above average earnings for the late season figures. Of course not all of their parks will meet this, but I feel that from the last quarter that they announced being dismal, this time around will be at least decent.

Weather and post 9/11 have already been covered on their excuse list. I dont see them using it this time around.

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2 superheroes in Gurnee next season? Oh the humanity. *** This post was edited by Chitown on 11/12/2002. ***

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Tuesday, November 12, 2002 1:32 PM
You guys are so anti-Six Flags. Not everybody goes to Cedar Point. I've never heard of Cedar Point till this website. I think since Jeff is a shareholder it leans toward how great Cedar Fair. I'm not saying anything bad about Cedar cause I like what they're doing with Knotts, but come on. I like Magic Mountain and Knotts the same. Magic has the rides and Knotts has atmosphere that I liked since I was little. I dont bash any of the companies cause they make the places I love to go too.
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Tuesday, November 12, 2002 1:43 PM
bill gates bought a lot of six flags stock
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Tuesday, November 12, 2002 2:42 PM

I think Valleyfair will have a good season in 2003 with Steel Venom. Our attandance should increase. If we do well in 2003 hopefuly maybe a new thrill ride for the 2004 season. I have a hunch but I think B&M is coming to Valleyfair in a couple of years ;).

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9Years working at Valleyfair :)


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Tuesday, November 12, 2002 2:53 PM
As a shareholder in both Cedar Fair and Six Flags it would be counter productive for me to bash either. But it's also hard not to realize that SF seems to play the blame game when announcing financial figures. I hope that the 60-70% stock price drop will wake them up. While I am happy to buy PKS at under $5, right now $23 for FUN is probably a better bet. As it stands, FUN is going to pay out $0.40-0.50 per share quarterly dividend. I don't believe PKS has paid a dividend in quite a while, if ever.

*** This post was edited by CoasterDad64 on 11/12/2002. ***

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Tuesday, November 12, 2002 3:59 PM
Why is it that anyone who frequents Cedar Point, and says something bad about Six Flags is immediately called a hater? In an investment sense, SF just isn't a good buy right now, while CF is.

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LocoBazooka--Sevendust, Nonpoint, Stereo Vent, Mushroomhead
Korn Tour (With no name)--Korn, Puddle of Mudd, Deadsy

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Tuesday, November 12, 2002 4:28 PM
Thanks, "CP" genius. ;)

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"Escuse me, can you tell me where the heck the Mystery Lodge is"?

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Tuesday, November 12, 2002 5:15 PM
Jeff's avatar

Well he's right. I don't hate Six Flags, and I sure as hell don't want them to fail. From an investment standpoint though, FUN makes more sense. Investing has nothing to do with what feels good, these aren't sports teams. It has everything to do with what can make you money.

I agree with CoasterDad's comments that Six Flags does tend to try to look for blame instead of owning up to their problems, but that's a discussion for tomorrow.

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Jeff - Webmaster/Admin - CoasterBuzz.com - Sillynonsense.com
"Climbing as we fall, we dare to hold on to our fate, and steal away our destiny to catch ourselves with quiet grace" - The Stairs, INXS

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